PART 5NON-SEGREGATED SCHEMES:
SCHEMES WITH A REQUIREMENT FOR PARTIAL WIND UP ON THE WITHDRAWAL OF A PARTICIPATING EMPLOYER
Notification of insolvency events, confirmation of scheme status etc.46
1
Section 120 of the Act (duty to notify insolvency events in respect of employers) shall be modified in its application to a segregated part to which regulation 45 applies so that it shall be read as if—
a
for subsection (1), there were substituted the following subsection—
1
This section applies where an insolvency event occurs in relation to an employer in relation to a multi-employer scheme which is not divided into two or more sections (“a non-segregated scheme”) under the rules of which the trustees or managers of the scheme are required, in circumstances where an employer in relation to the scheme ceases to participate in the scheme, to segregate such part of the assets of the scheme as is attributable to the scheme’s liabilities to provide pensions or other benefits to or in respect of the pensionable service of some or all of the members of the scheme by reference to that employer (“the segregated part”).
b
after subsection (2), there were inserted the following subsection—
2A
Where the trustees or managers of a segregated part of a non-segregated scheme receive a notice from an insolvency practitioner under subsection (2), they must send a copy of that notice as soon as practicable to all the employers in relation to the scheme.
2
Section 122 of the Act (insolvency practitioner’s duty to issue notices confirming status of scheme) shall be modified in its application to a segregated part to which regulation 45 applies so that it shall be read as if—
a
for subsection (1), there were substituted the following subsection—
1
This section applies where an insolvency event has occurred in relation to an employer in relation to a non-segregated scheme and a segregated part of the scheme is created.
b
in subsection (2)—
i
after the words “a scheme rescue is not possible” in paragraph (a), there were inserted the words “in relation to a segregated part”; and
ii
after the words “a scheme rescue has occurred” in paragraph (b), there were inserted the words “in relation to a segregated part”;
c
in subsection (4)—
i
after the words “a scheme rescue is not possible” in paragraph (a), there were inserted the words “in relation to the relevant segregated part”; and
ii
after the words “a scheme rescue has occurred” there were inserted the words “in relation to the relevant segregated part”;
d
for the words “in relation to an occupational pension scheme” in paragraphs (a) and (b) of subsection (5), there were substituted the words “in relation to a segregated part of a non-segregated scheme”; and
e
after subsection (6), there were inserted the following subsection—
6A
Where the trustees or managers of a segregated part of a non-segregated scheme receive a notice issued by an insolvency practitioner or former insolvency practitioner under subsection (6), they must send a copy of that notice as soon as practicable to all the employers in relation to the scheme.
3
Section 123 of the Act (approval of notices issued under section 122) shall be modified in its application to a segregated part to which regulation 45 applies so that it shall be read as if—
a
for subsection (1), there were substituted the following subsection—
1
This section applies where the Board receives a notice under section 122(6) (“the section 122 notice”) in relation to a segregated part of a non-segregated scheme.
b
after subsection (4), there were inserted the following subsection—
4A
Where the trustees or managers of a segregated part of a non-segregated scheme receive a copy of a determination notice from the Board under subsection (4), they must send a copy of that notice as soon as practicable to all the employers in relation to the scheme.
4
Section 124 of the Act (Board’s duty where there is a failure to comply with section 122) shall be modified in its application to a segregated part to which regulation 45 applies so that it shall be read as if—
a
for the words “This section applies where, in relation to an occupational pension scheme” in subsection (1), there were substituted the words “This section applies where, in relation to a segregated part of a non-segregated scheme”; and
b
after subsection (4), there were inserted the following subsection—
4A
Where the trustees or managers of a segregated part of a non-segregated scheme receive a copy of a notice issued by the Board under subsection 122 by virtue of this section, they must send a copy of that notice as soon as practicable to all the employers in relation to the scheme.
5
Section 125 of the Act (binding notices confirming status of the scheme) shall be modified in its application to a segregated part to which regulation 45 applies so that after subsection (3), there were inserted the following subsection—
3A
Where the trustees or managers of a segregated part of a non-segregated scheme receive a notice from the Board under subsection (3) together with a copy of the binding notice, they must send a copy of the notice and the binding notice as soon as practicable to all the employers in relation to the scheme.